Editorial: Cutting off unemployment benefits harms local economies

About 1.3 million long-term unemployed Americans are beginning to rotate off unemployment benefits rolls after emergency unemployment benefits expired Dec. 28. And that's only about a third of the 4.1 million long-term unemployed, most of whom have already maxed out on emergency benefits.

This will mean hardship for individuals and families. Some experts say it will also slow the nation's recovery from the Great Recession.

And that would be bad for everyone.

Just before Congress took a one-week recess, Senate Majority Leader Harry Reid and other Democratic senators couldn't muster enough votes to reinstate this safety net for the long-term unemployed.

There is still a glimmer of hope that the issue might be revived.

CNN reported that a recent poll from Quinnepiac University shows that 58 percent of voters support extending unemployment benefits for three more months.

Economic recovery is progressing faster in Louisiana than in other parts of the country - and yet, nearly 8,000 Louisianians lost their long-term unemployment benefits at the end of 2013 and another 30,000 are set to lose them, if nothing is done to extend benefits beyond the usual 26-week maximum. Emergency unemployment benefits were paid for as long as 99 weeks in some states.

There are those who believe many benefits recipients are taking advantage of a government handout - which pays an average of $300 a week and requires evidence of an ongong job search.

But the reality, according to the Burreau of Labor Statistics, is that there are about 2.9 people looking for work for every job opening.

In addition, the Washington Post has reported, many employers assume there is something wrong with a job applicant whose resume reflects a long gap in employment, making joblessness a self-perpetuating problem for many.

And in spite of a slight downturn in new unemployment benefits applications, the long-term jobless rate in America is still higher than it has been since World War II. The recession isn't over yet.

It's a difficult situation for the jobless. And it could be a difficult situation for the nation.

Because the long-term unemployed will have less money to spend on goods and services, there will be a ripple effect on economic recovery. Michael Feroli of J.P. Morgan estimated in a Washington Post article that the drop in commerce will lower first quarter economic growth by 0.4 percent. The Economic Policy Institute has estimated that the GDP will drop by 0.2 percent, causing the loss of 310,000 additional jobs.

In Louisiana, it's estimated that $1.6 million in economic activity is being lost each week, according to information from the House Ways and Means Committee.

It's unclear at this point what will happen to the millions of Americans losing their unemployment benefits. The most likely scenario is that they will be forced to turn to public assistance to feed their families and keep a roof over their heads.

Either way, taxpayer dollars will have to provide a safety net for the long-term unemployed.

Let's hope that our senators in Washington will return with a new determination to resolve this acrimonious partisan issue and will find a way to compromise. Let us hope they put partisan politics aside and act in the best interests of these members of the middle class who need a little more help until they can get back on their feet.

It's true that unemployment benefits have to be paid for, but in the long run, extending long-term unemployment benefits to help mostly middle-class workers who have lost their jobs will hurt the economy less than ending them.

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Editorial: Cutting off unemployment benefits harms local economies

About 1.3 million long-term unemployed Americans are beginning to rotate off unemployment benefits rolls after emergency unemployment benefits expired Dec.